MGIC - Travel

Travel by MGIC Personnel and Guests on MGIC Business

Purpose

The purpose of this policy is to ensure sound processes for the approval and payment of expenses for allowable international travel, and to promote safety and security for Maryland Global Initiatives Corporation (MGIC) personnel and Guests traveling on MGIC business.

Background

As used in this policy “MGIC personnel,” or individually an MGIC Employee, means someone employed through an MGIC Employer of Record (EOR) service provider. MGIC personnel are employed through EORs on behalf of the University of Maryland, Baltimore (UMB) and other universities using MGIC services under agreement with UMB (hereafter referred to for purposes of MGIC policies only as UMB Affiliate Entities).

“MGIC Guests” as used throughout this policy, refers to travelers who are neither MGIC employees nor employees or students of UMB or the Affiliate Entity, who are traveling on approved MGIC business. MGIC Guests may include (but are not limited to) independent contractors, research collaborators, authorized dependents of an MGIC foreign national employee, and institutional partner representatives. 

“MGIC Business” as used throughout this policy, means a trip between the U.S. and a foreign country, between foreign countries, or within the country of assignment, by a person who:

• Is an MGIC employee OR an MGIC Guest; and:
• Is traveling at the invitation of a UMB/Affiliate Requesting Unit; and:
• Whose approved travel expenses are funded by UMB/Affiliate and paid via MGIC.

The International Operations (IO) division of UMB’s Administration and Finance department administers the MGIC mechanism and manages the travel support services described in this policy. When an MGIC service is performed for the benefit of the IO division, IO also functions as the Requesting Unit.  

Policy Statement

Use of MGIC Travel Support Services

1. MGIC personnel and Guests who require payment to a bank account outside the United States may receive travel advances and reimbursements for approved business or academic travel.
2. MGIC will not provide travel advances or reimbursements to UMB/Affiliate employees (faculty and staff on UMB/Affiliate payroll) other than MGIC employees, or to enrolled students at a USM university. UMB/Affiliate personnel (other than MGIC employees) and students must be reimbursed or liquidate advances through their respective institutions.
3. Requesting Units may use MGIC to procure goods and services from, and make payments directly to, commercial vendors and service providers outside the U.S. on behalf of UMB/Affiliate employees or students traveling on approved business or academic travel. The use of MGIC to directly pay vendors outside the U.S. on behalf of UMB/Affiliate employees or students may be allowed when the foreign vendor does not accept payment mechanisms readily available to the traveler or university procurement cards, or when the traveler could incur security risk by paying directly.
4. See MGIC policy on Use and Administration of MGIC for more information.

Travel Approval

1. All travel by MGIC personnel and Guests on MGIC business outside the country of the traveler’s duty station (i.e. International Travel) must be approved in accordance with the applicable travel policies and procedures of the UMB or Affiliate Entity requesting MGIC services, before the trip occurs.
   • For MGIC travelers managed and funded by UMB Requesting Units, approval and booking of airfare must comply with the UMB procedure for Non-Employee International Travel.
   • MGIC travelers managed and funded by an Affiliate Entity must comply with the respective institution’s applicable travel policies and procedures.
2. All travel must be approved by an authorized approver prior to travel, in accordance with UMB/Affiliate Entity’s policies. Personnel may not authorize their own travel.
3. Requesting Units are fully responsible to ensure their respective institution’s travel approval policies and procedures have been followed for MGIC personnel and Guests retained by the Requesting Unit, before seeking MGIC services. Documentation of travel approval received from the Requesting Unit will be assumed by the IO division to be compliant with the relevant institution’s policies.
4. Requesting Units in Affiliate Entities must notify UMB’s International Safety and Security Manager of the destinations and dates of MGIC personnel travel, in order to determine insurance coverage requirements and to facilitate international security monitoring by the IO division. See MGIC policy on Safety and Security.

Allowability of Travel Expenses

1. Travel expenses must be necessary, reasonable, allowable, allocable, and in compliance with UMB/Affiliate’s policies and any applicable sponsor rules and regulations. The standards for this statement include:
   • The travel must be necessary to carry out MGIC business.
   • The travel costs must be reasonable and allocable to identified funding sources in compliance with applicable regulations.
   • Costs for lodging during business travel must not be lavish or extravagant and must not provide any significant element of personal benefit.
2. Meals for overnight trips are allowable up to a maximum per diem level. MGIC rates for Meals and Incidental Expenses (M&IE) for travel in countries other than the United States may not exceed the S. Department of State Foreign Per Diem Rates. MGIC M&IE rates for travel within the United States may not exceed the U.S. General Services Administration (GSA) Per Diem rates for each state and city of destination.
3. MGIC travelers are entitled to 75% of the M&IE rate for a partial day’s travel on a multi-day international trip. The M&IE allowance will be reduced if meals are provided free of charge or if another entity pays for meals. Reductions are as follows:
   • 15% for breakfast
   • 25% for lunch
   • 40% for dinner
4. M&IE for day travel within the MGIC traveler’s country of assignment may be reimbursable with prior approval of the Requesting Unit, subject to the Unit’s institutional travel policies. These reimbursements must be based on actual substantiated expenses (e.g., itemized receipts) and not on a per diem basis. Day trip M&IE receipts for individual meals must not exceed the established federal foreign per diem rate.
5. Lodging expenses are paid at the standard room rate charged by the facility and the related taxes. Federal per diem rates are used as guidelines to determine reasonableness. Rates that exceed the federal per diem rates may require documented justification.
6. Miscellaneous other allowable expenses may be reimbursable upon presentation of supporting documentation and approval of a Travel Expense Report. Examples of allowable expenses include:
   • Ground transportation to and from airports, hotels, and meeting venues
   • Parking fees
   • Laundry services, when an employee is required to be in travel status for longer than one week
   • Registration fees charged by organizations for attendance at conferences and workshops, if not paid in advance
   • Visas and passports obtained for the purpose of international business travel
   • Inoculations, prophylactic medicines, and screening tests required for international business travel
   • Photographs for travel documents
   • Internet services to conduct MGIC business
   • Baggage expenses for the first checked bag and business-related additional bags
   • Business Center costs for administrative services with a business purpose, such as photocopying business documents
7. Unallowable travel expenses will not be reimbursed. The following list provides examples of unallowable travel expenses and is not intended to be all inclusive.
   • Travel expenses for relatives, dependents, friends, companions, or pets, except when dependent travel is stipulated in the employment agreement or when childcare expenses are reimbursable according to the local labor regulations
   • Pet boarding or house-sitting expenses
   • Travel expenses incurred for personal convenience or preference, or otherwise not required to fulfill the business purpose of the travel
   • Fees incurred to fulfill personal requests (e.g., to obtain an aisle seat)
   • Magazines, newspapers, or other purchased media
   • Personal entertainment
   • Commute mileage (mileage traveled routinely between one’s residence and worksite)
   • Fines, traffic citations, parking tickets
   • First-class airfare
   • Airfare purchased using frequent flyer miles, or travel upgrade fees
   • Flight insurance beyond the international travel insurance carried by UMB/Affiliate or procured by the country office
   • Lost baggage
   • Airport club membership or lounge access fees
   • Lost or stolen tickets, cash, or property
   • Costs incurred by unreasonable failure to cancel transportation or hotel reservations
   • Upgrades to hotel rooms, fees related to hotel late check-out for personal reasons (as opposed to business reasons)
   • Food, beverages, and snacks in excess of per diem meal rates
   • Alcoholic beverages
   • Gifts to hosts and sponsors
   • Travel-related services provided or costs incurred by a third party on behalf of an MGIC or UMB/Affiliate traveler, without a valid commercial invoice and other documentation required for vendor services.
8. Shared expenses for trips involving multiple travelers will be reimbursed to the traveler(s) who paid the expenses as designated on their expense report. Travelers sharing expenses are encouraged to obtain separate receipts and submit separate claims for reimbursement of the expenses.

Travel Advances and Expense Reimbursements

1. Travel advances may be issued to MGIC personnel and Guests traveling on MGIC business with the approval of the Assistant Vice President (AVP) - IO, in their capacity as MGIC Vice President – Policy & Administration.
2. UMB/Affiliate employees (faculty and staff) and students may not receive travel advances or reimbursements from MGIC.
3. MGIC travelers may not pay a UMB/Affiliate employee’s or student’s travel expenses.
4. MGIC travel advances shall only be issued when the IO finance team has received a pre-approved travel request from UMB/Affiliate. IO is not responsible for confirming the completeness or compliance of travel request approval documentation from a Requesting Unit.
5. Travel expenses by MGIC personnel and Guests traveling on MGIC business must be reimbursed, or a travel advance liquidated, through a travel expense report approved by the Requesting Unit. Travel expense reports must include full supporting documentation (receipts and proofs of payment required, except for per diem rates for Meals and Incidental Expenses), as well as the fully approved Travel Request in Concur, proof of the trip’s business purpose, and proof the trip took place (hotel check-out statement, conference attendance confirmation, etc.).
6. If expenses are incurred in foreign currency, the traveler must attach documentation such as exchange receipts, credit card or bank statements, or a reliable foreign currency convertor tool (e.g., OANDA) showing the rate of exchange to USD on the date of transaction.
7. Whenever possible, UMB/Affiliate or MGIC should pay the cost of travel accommodations for MGIC employees or Guests directly to the lodging business. If an MGIC employee or Guest pays for their own lodging, a signed receipt or other proof of purchase is required and must be included in the Travel Expense Report.
8. See MGIC policy on Payment of Expenses and Advances for more information.

Safety and Security While Traveling

Any incident affecting the safety and security of people and/or property while on MGIC business travel must be immediately reported to the employee’s supervisor as soon as possible, even if injury or damage to property is deemed minimal. See MGIC Policy on Safety and Security.

Policy Exceptions

In general, if exceptions to this Policy are requested for a traveler, the justification must be fully documented and approved by the AVP-IO in their capacity as MGIC VP prior to travel, unless emergency conditions preclude obtaining prior approval.

Scope

This policy applies to all MGIC personnel and Guests traveling on MGIC business, and to UMB Requesting Units and Affiliate Entities who sponsor or pay for this travel through the MGIC mechanism.

Responsibilities

1. IO International Finance staff: Comply fully with all aspects of this policy. Escalate cases of non-compliance by travelers or Requesting Units to AVP-IO. Develop, implement, and follow appropriate standard operating procedures to function efficiently, minimize risk to MGIC users and stakeholders, and maintain appropriate segregation of duties and safeguarding of confidential documents.
2. AVP-IO (in capacity of MGIC VP – Policy & Administration): Oversee MGIC international travel process. Interpret policy requirements for Requesting Units and for MGIC personnel. Approve policy exceptions for legitimate reasons only.
3. Requesting Units: Follow MGIC and associated UMB/Affiliate policies and procedures for international travel. Notify IO’s International Safety & Security Manager of travel by MGIC personnel associated with Affiliate Entities at time of travel request. Authorize travel requests and expense requests. Ensure expenses submitted for reimbursement or payment through MGIC are allowable, reasonable, allocable, and compliant with sponsor regulations. Approve travel expense reports and supporting documentation (receipts, etc). Request Policy Exceptions for legitimate reasons only, and refrain from policy deviations unless and until an exception is approved by MGIC.

Procedures

See MGIC Standard Operating Procedures.

Documentation Requirements

• Travel Approval documentation as required by applicable UMB/Affiliate travel policy
• Travel Expense Report
• Supporting documents to substantiate expenses

References

• MGIC Policy on Policy Exceptions
• MGIC Policy on Payment of Expenses and Advances
• MGIC Policy on Safety and Security
• MGIC Policy on Use and Administration of MGIC
• OANDA
• S. Department of State Foreign Per Diem Rates
• S. General Services Administration (GSA) Per Diem rates
• UMB procedure for Non-Employee International Travel